The End of Globalization Began Yesterday

Donald Trump called it “Liberation Day.” A catchy slogan, designed to resonate with his base, but more bombastic than real. It sounds like a Hollywood movie title, like the one where Will Smith saves the world on Independence Day. But this time, there are no aliens or explosions—just tariffs and an imminent fracture of the global economic order.

Yesterday wasn’t a liberation; it was a direct shot to the heart of globalization. With the implementation of new tariffs imposed by the United States, we may have witnessed the beginning of the end of a system that has defined the economy for the past four decades. This isn’t about halting a collapse—it’s about shooting yourself in the foot.

For some, like Vladimir Putin, it’s cause for celebration. Globalization was built on the ruins of the Soviet Union, leaving Russia at a disadvantage in open markets. While the world integrated, Moscow bet on force and geopolitics. Neoliberalism became the dominant doctrine. History goes on, Mr. Fukuyama. And yes, Mr. Marx, it repeats itself.

But this goes beyond Russia. Trump, in his signature grandiloquent style, unveiled the tariffs with his infamous charts in hand, as if delivering new economic commandments. A scene reminiscent of Moses descending with the tablets of law—but in a tariff-laden version. The math? Pure populism: trade deficit divided by exports… multiplied by paranoia.

The main casualties are Asian countries: China, Japan, Vietnam, and Cambodia—economies that have thrived on globalization thanks to cheap labor and rapid adoption—or copying—of technology. A prime example is DeepSeek, the Chinese AI model that, despite lacking access to advanced U.S. or European chips, competes with ChatGPT and Claude at a fraction of the cost. Yet, this seems like spitting into the wind. Tech giants, heavily reliant on Asian production, saw their market value evaporate in mere hours.

Trump and his conservative base blame globalization for America’s economic decline. They argue that shifting production to Asia destroyed jobs and weakened the working class. Ironically, many architects of globalization were conservatives—among them, the Bushes. Now, Trump isn’t just breaking with the Democrats; he’s breaking with his own party. But manufacturing in the U.S. everything that now faces tariffs won’t be fast or cheap.

The real issue is that these tariffs will make essential goods more expensive, hitting American consumers hard and increasing the risk of a recession. Is this a strategic move to curb Asia’s rise? Or just a nostalgic bet on a manufacturing-based America that no longer exists? Likely both. What’s certain is that Asia’s ascent is inevitable, while a return to a 1950s U.S. economy is pure fantasy.

As China, Japan, and South Korea explore forming their own economic bloc—one that could become unstoppable—Trump appears to be sketching his own version of regionalism. Curiously, three key names are missing from his initial tariff list: Mexico, Canada… and Russia. Coincidence? Is he laying the groundwork to strengthen ties with his neighbors? Are we witnessing the birth of a world divided into three power blocs: Asian, Euro-Russian, and American?

One thing is clear: we are entering an era of self-sufficient economic blocs. But the big question remains—can these new systems provide the same level of prosperity as globalization? Like it or not, the transformation has already begun. Yesterday may have felt like an ending, but it’s just the first act of a story that’s only beginning.